S.B. No. 1558 amends the Civil Practice and Remedies Code and the Family Code to establish specific liability protections for nonprofit entities contracted with the Department of Family and Protective Services or a single source continuum contractor that provide community-based care or child welfare services. The new Section 84.0068 outlines that these entities cannot be held liable for damages resulting from the actions of their employees, volunteers, or caregivers, provided they have conducted timely criminal background checks, confirmed the eligibility of these individuals, reported allegations of misconduct, taken appropriate administrative actions, and ensured that relevant training is completed. However, the bill allows for vicarious liability if the claimant can demonstrate that the entity was not in substantial compliance with these requirements at the time of the incident.

Additionally, the bill modifies Section 264.170 of the Family Code to clarify that nonprofit entities providing these services are considered charitable organizations under Chapter 84, which governs liability. The limitations on liability apply only when the entity or individual is acting within the scope of their contract and if the required insurance coverage is in place. The provisions of this act will apply only to causes of action that accrue on or after its effective date of September 1, 2025, ensuring that any claims arising before this date will be governed by the previous law.

Statutes affected:
Introduced: Family Code 264.170 (Family Code 264)
Senate Committee Report: Family Code 264.170 (Family Code 264)
Engrossed: Family Code 264.170 (Family Code 264)
House Committee Report: Family Code 264.170 (Family Code 264)
Enrolled: Family Code 264.170 (Family Code 264)